Electricity Price Review 2018-2019

Why the review is needed

Electricity prices, especially for households, have increased faster than inflation for many years, putting pressure on household budgets. In comparison, prices faced by commercial and industrial customers have remained relatively flat.

The Government has commissioned this review to investigate whether the electricity market, as it exists at present, is delivering a fair and equitable price to end-consumers.

The review will also consider possible improvements to ensure the market and its governance structures will continue to be appropriate into the future, as the sector benefits from rapidly changing technology and new innovations.

As energy production and consumption is such an integral part to New Zealand’s economy, this review will be of great interest to the industry and the public.

How the review process works

The Minister of Energy and Resources commissioned an independent Expert Advisory Panel to lead the review.

The Panel members were appointed by the Minister in April 2018. We were tasked with providing Secretariat support to the Panel and its review.

The Panel drives the research and analysis undertaken by our policy advisors and specialist consultants. The Panel also provides peer-review support and technical advice where necessary.

Panel members, the Chair, and our policy advisors all engage directly with stakeholders to garner a better understanding of the differing perspectives on the electricity market, electricity prices, and future challenges.

See Expert Advisory Panel members

The review will take into account crossovers and linkages with existing and planned work, including:

• the Electricity Authority's work on transmission pricing
• the new Interim Climate Change Committee and Climate Commission's work on how to reach 100% renewable electricity by 2035
• the Productivity Commission's work on its low emissions economy inquiry.

Recent updates

• 1 April 2019 - release of feedback on the options paper(external link)
• 25 March 2019 - update on the review’s second round of stakeholder engagement [PDF, 33 KB]
  – testing and developing the 41 preliminary options contained in our February 2019 paper.
• 20 February 2019 - The review’s options paper published for feedback. It contains early ideas to improve our electricity sector. 
• 13 February 2019 - a letter from the Chair of the Review updating stakeholders on the publication of the Options paper: Stakeholder engagement

Key documents

Second phase of review

The second phase of work is focused on developing possible improvements to the electricity sector.

The Panel published an options paper setting out possible solutions to the problems discussed in its first report.

The report was published 20 February 2019. The public was invited to submit their views on these options through another round of stakeholder engagement in February – March 2019. Submissions closed 12 noon, Friday 22 March 2019.

First phase of review completed

The review has completed its first phase of work, which focused on determining facts and building evidence.

The review engaged with stakeholders, including the public, industry representatives, and consumer groups to gain a better understanding of the current electricity market. It also analysed billing data from providers, which focused on prices for different consumer groups.

The review released its First Report for Discussion on 11 September 2018, and a detailed Analysis of retail billing data on 15 October 2018.